Here's what it says
From now on, money you receive will be temporarily held in a pending balance. To learn more, please read our Payment Holds policy.
Ok, so I click on the policy link and read this
Overview
When some sellers receive payments, we may hold the money in a pending balance for up to 21 days to help make sure that there are funds in the seller's account to cover potential refunds or claims. The funds may be released early if PayPal determines that the transaction has been fulfilled and customers are satisfied.
While funds are pending, the money belongs to you but isn't available to spend or withdraw.
If payments on your account are held, we'll notify you. PayPal will re-evaluate your account every 35 days and decide whether or not to continue holding payments. If we decide to stop holding future payments, we'll contact you.
I've just received a payment and the funds are on hold.
What should I do next?
When does PayPal release the payment?
Can held funds be used to pay for shipping?
What can I do to avoid payment holds?
Who does this affect?
Why does PayPal hold payments?
^^^^those are links
I've just received a payment and the funds are on hold. What should I do next?
The best way to help get the money released sooner than 21 days is to process orders right away, ship quickly using a service that provides online tracking, upload or save tracking numbers, and communicate with your customers early and often.
When does PayPal release the payment?
The funds from each transaction will typically be released 21 days after payment, unless there's a dispute, chargeback, claim, return or reversal on that transaction, or any other limitation on your account. The money may be released sooner if:
Your buyer leaves positive feedback (Applies only to eBay items) or
We can confirm that the item was delivered* and 3 days elapse. This gives the buyer enough time to review the order and file a dispute if necessary
Can held funds be used to pay for shipping?
If you print labels and pay for shipping through PayPal or eBay, the cost of shipping will be released from your pending balance shortly after purchase. Printing labels on eBay and PayPal is free. You're charged only the cost of shipping.
What can I do to avoid payment holds?
Here are some things you can do:
If you sell on eBay, improve your Detailed Seller Ratings ( DSRs )scores
Avoid buyer disputes, claims, and chargebacks
If you have a buyer dispute, resolve it quickly
Process your orders right away and ship quickly using a service that provides tracking and delivery confirmation
Upload or save tracking information or Delivery Confirmation numbers
Communicate early and often with your buyers
Make sure you confirm the address and phone numbers associated with your PayPal account, and keep them up to date
Verify your account and keep your financial information (like bank account and credit card numbers and expiration) up to date
Who does this affect?
This typically affects sellers whose businesses or selling activities pose a higher than average risk of future transaction problems, such as potential refunds, disputes, claims or chargebacks. In deciding whether or not to hold funds in a pending balance, we review many account factors including transaction activity, the rate of customer disputes, the type of business a seller runs, average delivery time frames, customer satisfaction, performance and history. We understand that some experienced sellers may be affected. While history with PayPal is important, it's only one of many factors we consider.
Though we can't include every reason your account may have been affected here, here are some common reasons:
You have limited history or selling activity with eBay and PayPal
You have low Detailed Seller Ratings, negative Feedback or other indication of below-standard performance on eBay
You have a high rate of customer refunds, disputes, claims or chargebacks
You're selling in a high risk category or industry such as, but not limited to, tickets, travel, gift certificates, computers, consumer electronics, or cell phones
Your business or selling activity is inconsistent. For example, you have a spike in selling activity, your average selling price changes, or you started selling in a new category without an established history in that category
The account information you have provided is incomplete or inaccurate, or we're uncertain with the information you've provided
Your withdrawal activity has changed
Why does PayPal hold payments?
Holding funds in a pending balance for a specified amount of time is a common practice in the payments industry. Delaying access to funds helps ensure that sellers have sufficient funds in their account to cover claims or refunds.
Wow, so evidently the paypal fees aren't enough. They must also earn interest on our balances? My other paypal account has never been hit with this--wtf?